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Magnolia ISD proposes tiered 401(a) employer match to help retain teachers
Summary
Workshop materials propose a new 401(a) plan with employer matches that rise with years of service: 2% (10–15 years), 3% (16–20 years) and 5% (21+ years), with example contributions ranging from about $500 to $5,000 depending on salary.
Magnolia ISD presented a proposed 401(a) retirement-match plan at its May 5, 2026, budget workshop intended as a teacher-retention incentive. The proposal scales employer contributions to years of service: 2% for staff with 10–15 years, 3% for 16–20 years and 5% for 21 or more years of service.
The minutes include example employer contributions for hypothetical salary levels: for a $25,000 salary the employer match examples are $500 (2%), $750 (3%) and $1,250 (5%); for $50,000 the examples are $1,000, $1,500 and $2,500; for $100,000 the examples are $2,000, $3,000 and $5,000. The materials presented the 401(a) proposal as an employer-funded match intended to augment retirement savings and support retention, but the minutes do not specify implementation timing or funding source line items in the budget text provided.
The proposal appeared in workshop materials presented by administration and staff; the minutes do not record a formal vote or final adoption during the May 5 workshop.
